AI is reshaping data center architectures at an unprecedented pace. Next-generation accelerated systems are no longer confined to a single rack but are evolving into multi-rack configurations connecting hundreds of XPUs with an integrated fabric offering high bandwidth, ultra-low latency, and scalability of any kind. This architecture allows each XPU to directly access the memory of every other XPU. These advanced fabrics require specific switches and protocols, such as UALink, designed to deliver the necessary performance and efficiency at scale.
Given the power, bandwidth, latency, and reach requirements of multi-rack scalability fabrics, interconnects will increasingly become all-optical. This acquisition positions Marvell to lead this technological shift and capture a new total market for semiconductors for optical interconnects.
Combined with its existing leadership in horizontal and vertical scalability connectivity, Marvell expects this expanded portfolio to position it as the industry's most comprehensive provider of high-bandwidth, low-power, low-latency solutions for next-generation data center connectivity.
"The acquisition of Celestial AI is a transformative step in Marvell's evolution and extends our leadership in AI connectivity as scalability becomes the next frontier in AI infrastructure," said Matt Murphy, president and CEO of Marvell. "This builds on our technology leadership, expands our potential market in scalability connectivity, and accelerates our roadmap to deliver the industry's most comprehensive connectivity platform for AI and cloud customers."
"AI infrastructure is transforming faster than ever, and the future demands scalability fabrics that deliver unprecedented bandwidth, energy efficiency, and reach," said Sandeep Bharathi, president of the Data Center Group. “By combining our UALink spanning switch roadmap and Celestial AI’s innovative optical spanning interconnect, we will enable customers to build AI systems that push beyond the limitations of copper and redefine what’s possible in AI data center architecture.” “
At AWS, we aim to be at the forefront of major technology changes, and we believe optical interconnects will play a significant role in the future of AI infrastructure. Building a scalable, high-performance, and energy-efficient cloud starts with a differentiated technology approach,” said Dave Brown, vice president of Compute and Machine Learning Services at AWS. “Celestial AI has made impressive strides, and we expect its combination with a large-scale semiconductor company like Marvell will further accelerate innovation in optical spanning for next-generation AI deployments.”
Celestial AI: Revolutionary Photonic Technology Platform for Large-Scale Interconnection.
As bandwidth and reach continue to increase, all data center connection points must migrate from copper to optics. This transition has already occurred in rack-to-rack and data center-to-data center DCI connections. The next tipping point lies within the rack, within the system, and even within a package, where electrical connections must give way to optics.
Celestial AI's Photonic Fabric technology platform was specifically designed for this tipping point. It enables large AI clusters to scale both within and between racks using a high-bandwidth, low-latency, low-power, and cost-effective optical fabric. This advancement delivers a true optical solution with more than twice the energy efficiency of copper interconnects, along with significantly greater reach and bandwidth. Compared to other alternative photonic technologies, Celestial AI's solution offers exceptionally low power consumption, nanosecond latency, and excellent thermal stability, enabling deeper levels of optical interconnectivity in XPU and switching systems.
The thermal stability of Celestial AI's Photonic Fabric technology is a key competitive differentiator. It enables reliable operation in the extreme thermal environments created by large XPUs and multi-kilowatt switches. This allows the photonic technology to be vertically packaged with high-power XPUs and switches in a 3D package, enabling the photonic connection to be made directly on the XPU, rather than from the chip edge. Celestial AI's approach results in a more compact and integrated solution, while freeing up valuable space at the chip edge, which can be repurposed to significantly increase the amount of HBM within the XPU package.
The first application of this technology platform will be all-optical expansion interconnects, as high-speed XPU links transition from copper to optics to meet the reach and bandwidth demands of next-generation rack architectures. Celestial AI’s first-generation Photonic Fabric chiplet for expansion interconnects integrates all the necessary electrical and optical components into a compact form factor. It is the industry’s first optical expansion solution to deliver an unprecedented 16 terabits per second bandwidth on a single chiplet—10 times the capacity of the latest-generation 1.6T ports currently used in expansion applications. Its compact form factor allows multiple PF chiplets to be packaged with XPUs and scalability switches on the opposite side of the link, significantly increasing the overall system bandwidth.
Celestial AI is collaborating closely with multiple hyperscalers and ecosystem partners who plan to use Celestial AI's Photonic Fabric technology in their next-generation scalability architectures. Building on current customer uptake, Marvell expects Celestial AI's Photonic Fabric chiplets to be packaged with custom XPUs and scalability switches, enabling the industry's first large-scale commercial deployment of optical interconnect for scalability connectivity.
Marvell expects Celestial AI to begin delivering significant revenue in the second half of fiscal year 2028, reaching an annualized run rate of $500 million in the fourth quarter of fiscal year 2028, which will double to a run rate of $1 billion in the fourth quarter of fiscal year 2029.
Beyond connecting XPUs in scalable networks, Celestial AI's Photonic Fabric technology platform can enable a wide range of transformative applications over time, including shared memory devices and optical replacements for traditional electrical connections between chips in multichip packages.
“Marvell is the ideal home for our Photonic Fabric, with the scale, customer relationships, and connectivity leadership needed to bring this platform to large-scale production,” said David Lazovsky, co-founder and CEO of Celestial AI. “Together with Marvell’s scalability switching strategy, we’re excited to accelerate the transition to scalable optical interconnect and expand what next-generation AI infrastructure can achieve.”
